The Internet Situation in Lebanon


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The Internet Situation in Lebanon

  1. 1. Internet Situation in Lebanon<br />Special Report <br />18 March 2011<br /><br /><br />
  2. 2. CURRENT SITUATION<br />Where do we stand now?<br /><br />
  3. 3. The beginning<br /><ul><li>MoT signed an MoU in January 2006 with a segment of private DSPs/ISPs in order to launch ADSL services; whereas worldwide ADSL services started as early as 1999
  4. 4. ADSL started in June 2007, but this market is facing a lot of bottlenecks which hinder the wide adoption of true broadband services</li></ul><br />Alcatel-Lucent after conducting a case study about the Lebanese Internet market conducted in 2005:<br />“Lebanon finds itself in a situation unique in the world, where DSL and WiMAX will be launched in parallel. Both infrastructures will complement one another. DSL will be deployed in large cities; WiMAX will be deployed in large cities as a mobile complement to DSL, and as a main broadband access method elsewhere. The WiMAX strategy also benefits from the lack of 3G services in Lebanon. For an overall initial deployment of about 70,000 users, it is expected to reach break–even in a 24–30 month timeframe.”<br />
  5. 5. Major Problems with the Lebanese adsl market<br /><ul><li>Coverage: ADSL is not available in all areas of Lebanon, in addition that many Ogero nodes (Central Offices) present in rural area do not support ADSL
  6. 6. Unfair access to the central office: DSP collocation to Ogero central offices is not transparent nor fair, contrary to the provisions of fair competition between private operators and Ogero stipulated for in the ADSL related decrees (currently DSPs are collocated in only 35 Cos our of the 98 existing ones)
  7. 7. DSPs are not allowed to connect to ISPs other than their sister company (except for GDS, which is connected to two ISPs, Cyberia and IDM.
  8. 8. A subscriber needs to cancel his subscription, pay new installation fees and wait for a new subscription to be provided in case a customer wants to change his provider.</li></ul><br />
  9. 9.<br /><ul><li>The PSTN transmission network topology has limited fiber optic coverage; many suburban and rural areas Central offices are still lacking fiber optic connectivity and rely on microwave links.
  10. 10. It does not support high speed internet access, digital media services such as IPTV/VoD, online gaming, e-commerce, teleconferences, etc…
  11. 11. MoT Metro Ethernet network used for ADSL services is getting saturated by the increased needs of ADSL subscribers and therefore MoT started the expansion and modernization of its national transmission network to lay down a fully meshed fiber optic network of 4400 km of backbone along with versatile Active switching and cross connect components.
  12. 12. There are no wholesale backhaul bundled offers; DSPs and ISPs are still connected by network links of 100 Mbits/s
  13. 13. Coverage: ADSL is not available in all areas of Lebanon, in addition that many Ogero nodes (Central Offices) present in rural area do not support ADSL
  14. 14. A subscriber needs to cancel his subscription, pay new installation fees and wait for a new subscription to be provided in case a customer wants to change his provider.</li></li></ul><li>Pricing<br />Facts & Figures.<br /><br />
  15. 15. Prices/Services in Lebanon<br /><br />Source: TRA<br />
  16. 16.<br />Opinions on the Lebanese tariffs<br /><ul><li>The below are the results of a survey conducted by the TRA back in 2008 to show exactly what do Lebanese think of their Internet tariffs</li></li></ul><li>International benchmarks show that Lebanon DSL services are priced well above the regional prices<br /><br />
  17. 17. The Graphs speak for themselves<br />Prices Comparison<br /><br />
  18. 18.<br />Service Package in Lebanon<br />Typical Service Packages <br />SERVICES COMPARISON<br />
  19. 19. Speed / Bandwidth<br />Where are we? Where can we be?<br /><br />
  20. 20. To cater for growing demand in High Speed Internet services, major investments are currently undertaken by the MoT to increase the existing international bandwidth capacity. (why can’t we see any improvements then?)<br />?<br /><br />
  21. 21. the minister of telecommunication’s press conference on the 28th of September 2010<br /><ul><li>“As of October 2010 total international capacity (for voice and data) is 2.5 Gbps witnessing a double increase from initial capacity of 1.25 Gbps”
  22. 22. “Participation in the ownership of the new high capacity submarine cable system that will provide Lebanon, upon its service commissioning, with 120 Gbps of international bandwidth capacity”
  23. 23. “Expanding existing submarine Fiber Optical Cable (Cadmus) by adding capacity of around 210Gbps between November and December 2010, and thus increasing the current capacity by 168 times”</li></ul><br />
  24. 24. Then WHY haven’t we witnessed any improvements even though the facts mentioned in the previous slide were implemented?<br /><br />
  25. 25. In the following slides you will read about a lot of technical terms, bear with us.<br /><br />
  26. 26.<br />National Backbone Transmission Network<br />Lack of national backbone network: <br /><ul><li>Currently, the PSTN transmission network topology has limited fiber optic coverage; many suburban and rural areas Central Offices are still lacking fiber optic connection and rely on microwave links.
  27. 27. MoT is planning an expansion and modernization of its national transmission network to lay-down two fiber optic super-rings and 30 sub-rings ensuring a total network length of 4400 Km of backbone.</li></ul>Outdatedbackbone network infrastructure for the delivery of triple play and true broadband services<br /><ul><li>The current PSTN transmission network (designed telephony, with no fiber) does not support high speed internet access.
  28. 28. A minimum of a 40Gbits/s that can be provided by Ethernet backbone networks would be required to support such services (very low Jitter, Delay, etc…)</li></ul>Saturated transmission network:<br /><ul><li>Ogero has recently upgraded its national transmission network (covering only a limited subset of Central Offices) to a 10 Gbits/s Ethernet network, however this network is getting saturated by the increase needs from ADSL subscribers, leased lines and other wired transmission services.
  29. 29. DSPs and ISPs are still connected by a maximum of 100 Mbits/s network as Ogero didn't provide them with enough transmission capacity over its transmission network. </li></ul>Limited international capacity:<br /><ul><li>International cable capacity is still procured by MoT and distributed through E1 units (2 Mbps), whereas worldwide ISPs are granted international capacity through STM1 units (155 Mbps)
  30. 30. Currently MoT has around 8 STM1 (1240 Mbps) in service
  31. 31. IMEWE is likely to relieve, but only temporarily, the shortage of international bandwidth. </li></li></ul><li><br />The broadband agenda will benefit from clarity on a number of policy issues <br />
  32. 32. <ul><li>To sum up:
  33. 33. Our international gateway (the door) to the internet had been upgraded (as per the minister), but still nothing improved for Lebanese Internet users.
  34. 34. The work on the national backbone (the Lebanese internal network) has started but it’s commissioning has been postponed many times.
  35. 35. Our prices are the amongst the highest in the world compared to what we get, and the Lebanese authorities indirectly monopolize everything related to that sector minimizing any improvements or competition between ISPs.
  36. 36. Promises have been made along the year promising improvements.
  37. 37. After being true leaders in the Telecommunications sectors on a worldwide level, now we have the slowest internet connection in the world!
  38. 38. What is noticeable:
  39. 39. Partied involved in our telecommunication network in Lebanon:
  40. 40. OGERO: Ogero doesn’t act under the supervision of the Ministry of Telecom: according to a law (number 431) implemented back in 2002, Ogero is independent from the Ministry of Telecom. It only refers to the cabinet مجلس الوزراء
  41. 41. TRA:The Telecommunications Regulatory Authority (TRA) was established in accordance with Law 431 of 2002 as an independent public institution assigned to liberalize, regulate, and develop telecommunications in Lebanon.
  42. 42. MoT: The ministry of Telecommunications
  43. 43. What we truly have:
  44. 44. A verbal war triangle between them three, where each side points the finger to the other party (ies) as being the reason behind us being obsolete in the telecom domain.</li></ul>Conclusion<br /><br />
  45. 45. <ul><li>ISP: Internet Service Provider (List of ISPs operating in Lebanon:
  46. 46. DSP: Data Service Provider
  47. 47. DSL: Digital Subscriber Line
  48. 48. ADSL: Asymmetric Digital Subscriber Line
  49. 49. Bps: Bits per Second
  50. 50. Gbps: Giga Bits per Second
  51. 51. Kbps: Kilo Bit per Second
  52. 52. TRA: Telecommunications Regulatory Authority
  53. 53. MoT: Ministry of Telecommunications
  54. 54. PPP: The PPP conversion factor shows how much of a country's currency is needed in that country to buy what $1 would buy in the United States.
  55. 55. MoU: Memorandum of Understanding
  56. 56. Bandwidth: a data transmission rate; the maximum amount of information (bits/second) that can be transmitted along a channel
  57. 57. WIMAX: a telecommunications technology providing wireless data, voice and video over long distances
  58. 58. OECD: The Organization for Economic Co-operation and Development, An international agency which supports programs designed to facilitate trade and development
  59. 59. International Bandwidth: All bandwidth that passes out of a country to the internet
  60. 60. Central Office: The facility of a telecommunications common carrier where calls are switched
  61. 61. PSTN: The public switched telephone network (PSTN) is the network of the world's public circuit-switched telephone networks</li></ul>Glossary<br /><br />